A trader finds that a particular generic (i.e unbranded) antibiotic is available in Germany at a price of €0.50 per unit, compared to a minimum price of $0.80 per unit in the USA. The current exchange rate is €1.00 = $1.30, and he reckons that transport and marketing costs will amount to no more than $0.05 per unit.

(a) How much profit per unit can the trader make by buying in Germany and importing the drug into the USA?

(b) Suppose the trader reckons it will take a month to handle the formalities of actually importing the goods into USA and delivering them to the US hospitals who are his customers. Assuming drug prices in local currency remain unchanged, how much of a fall in the value of the dollar over the coming month would it take to wipe out his profits and saddle him with a 10% loss on the deal? Give your answer in terms of the percentage depreciation.